Almost 70% of managers who are in charge of personnel selection admit to having made wrong decisions during the process, and often have underestimated the consequences and impact that hiring the wrong resource can have.
A wrong hiring costs the company between €10,000 and €50,000, depending on the position and the annual salary of the person.
The estimated losses for newly hired employees range from 30% to 50% of their annual salary, while for highly skilled professionals, the losses can range from 100% to 150%. These are truly impressive figures that should make us reflect on the importance of this research phase.
An employee hired by mistake can lead to a loss of tens of thousands of euros, and that is why the search for a new resource must be done meticulously and without haste, if possible with the help of a recruiter or headhunter.
Beyond the economic impact
The costs associated with a wrong hiring include the expenses incurred by the company during the selection process, bureaucratic and training expenses, but there are also costs that are less easy to monetize and equally significant.
Errors in the selection process can affect the company’s reputation and production, and the losses will only be visible in the long term. Furthermore, an unsatisfactory hiring process produces a lot of stress within the organization and has serious repercussions on the satisfaction and productivity of employees, as well as on the company’s reputation with customers and suppliers.
The dynamics that lead to a decrease in satisfaction and productivity of a team can be various, for example, think about the time and effort dedicated to integrating a new person into the company and to all the training and onboarding activities. When these efforts do not bear fruit, they generate demotivation and frustration within the team, including managers.
How to avoid hiring the wrong person?
Hiring the wrong person can have negative consequences for your company, such as deteriorating work climate, loss of customers, decrease in productivity and work quality. Therefore, it is important to adopt measures to avoid making evaluation errors in personnel selection. Here are some tips:
Define the requirements clearly and precisely
This means that you must draft a job advertisement that lists all the skills and experiences that the ideal candidate must have to fill the role in question. Do not be too generic or vague in your requests, as this could lead you to receive applications from people who do not really meet your needs. Also, try to be honest and transparent about the job expectations, company culture, and benefits offered.
Do not be in a hurry to conclude the selection process
It may happen that you do not find the perfect candidate within the established time frame, but it is not a good idea to force the choice to fill a vacant position as soon as possible. This could lead you to make wrong decisions and hire someone who is not suitable for the role. Take the necessary time to find the right candidate and don’t be afraid to extend the timeline if necessary.
Test the skills of the candidates
A practical test, a group exercise, or a skills test can reveal a candidate’s weaknesses and help you understand if they are truly the right fit for the role. By doing so, you can have a more precise idea of the candidate’s skills and work attitude.
Invest in training
Even if you have found a candidate who seems to have all the necessary qualities, it may still be useful to offer training courses to help them develop the specific skills required for the job. In this way, you can ensure that the candidate is able to perform their tasks to the best of their abilities and can grow professionally within your company.
Create an inclusive and flexible work environment
Offering a work environment that values and respects the diversity of its employees can lead to greater productivity, satisfaction, and motivation. Moreover, being flexible about working hours and work mode (for example, favoring smart-working) can help find and retain the best talents.
Rely on professional recruiters
If you don’t have enough time or skills to manage the personnel selection process, you can consider relying on professional recruiters.
Especially when it comes to searching for highly qualified profiles or professionals in a specific industry, such as the cannabis industry. Choosing the help of a recruiter ensures an effective selection process, saves time, and reduces the likelihood of hiring the wrong candidate and therefore generating losses for the company.
Are you looking for new talent? Contact us to find the best professionals in the cannabis industry.
